FlexShopper, Inc. (NASDAQ:FPAY) director Howard Dvorkin has recently increased his stake in the company through a series of stock purchases, according to the latest filings with the Securities and Exchange Commission. The transactions, which took place between June 6 and June 11, involved the acquisition of company shares at prices ranging from $1.12 to $1.15.
The first purchase, executed on June 6, saw Dvorkin buying 6,400 shares at $1.12 each. This was followed by a larger transaction on June 7, where he acquired 64,054 shares, with the price per share being a weighted average of $1.12, as noted in the footnotes of the SEC filing. The shares on this date were bought in multiple transactions at prices from $1.10 to $1.12. The last purchase, on June 11, involved 20,467 shares at a weighted average price of $1.15, with individual prices ranging from $1.14 to $1.16.
In total, Dvorkin invested $102,445 in the company's stock over this period. Following these transactions, his total ownership in FlexShopper stands at 4,410,766 shares. It's worth noting that these shares are held indirectly through PITA Holdings, LLC, as indicated by a footnote in the SEC filing. Dvorkin, through his position as President of Beta Investment Group, Inc., which manages PITA Holdings, disclaims beneficial ownership except to the extent of his pecuniary interest.
FlexShopper, headquartered in Boca Raton, Florida, operates in the equipment rental and leasing sector. The company has seen various changes over the years, including a name change from Anchor Funding Services, Inc. to its current identity.
Investors often view insider purchases as a sign of confidence in the company's prospects, and Dvorkin's recent acquisitions may be interpreted as a positive signal. However, as with all investments, potential investors should consider a range of factors when evaluating the company's stock.
In other recent news, FlexShopper has been the focus of optimistic financial projections and strategic growth. H.C. Wainwright maintained a Buy rating on FlexShopper and increased the price target to $2.50, following a robust fourth-quarter performance in 2023. The firm revised its 2024 revenue projection for FlexShopper to $155.0 million, up from the earlier forecast of $152.9 million, and raised the adjusted EBITDA estimate for the full year of 2024 to $28.0 million.
The company's recent earnings call revealed significant Q4 growth, with a 7% increase in total fundings and a substantial 42% rise in net lease and loan revenues. FlexShopper also reported a dramatic turnaround in operating income, reaching $5.6 million from a previous $5.5 million loss. The company is evolving its business model, transitioning its website into a retail platform, and expanding payment options and merchandise selection.
H.C. Wainwright anticipates that FlexShopper will generate revenue of $173.0 million and an adjusted EBITDA of $33.0 million in 2025, driven by new product sales and potential success from recent store openings. The revised financial outlook reflects confidence in FlexShopper's revenue and adjusted EBITDA growth. These recent developments highlight the company's strong financial performance and strategic expansions.
InvestingPro Insights
In light of the recent insider stock purchases by FlexShopper, Inc. (NASDAQ:FPAY) director Howard Dvorkin, it is crucial for investors to consider the company's financial metrics and market performance to gain a comprehensive understanding of its current position. According to InvestingPro data, FlexShopper has a market capitalization of $25.27 million and has experienced a revenue growth of 4.57% over the last twelve months as of Q1 2024. The company's gross profit margin stands strong at 87.96%, indicating a robust profitability in terms of revenue.
However, despite these positive indicators, the company's P/E ratio is currently negative at -2.97, reflecting concerns about its profitability. This aligns with an InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Additionally, the stock's performance over the last six months has been challenging, with a price total return of -36.56%, which may suggest a period of volatility that investors should be mindful of.
On a more positive note, another InvestingPro Tip highlights that FlexShopper has seen a significant return over the last week, with a 9.26% increase in its stock price. This recent uptick could be related to the insider buying activity, potentially signaling a turning point for the stock. For those interested in delving deeper, there are additional InvestingPro Tips available that can provide further insights into FlexShopper's financial health and stock performance. For instance, the company's liquid assets exceed its short-term obligations, which could indicate a strong liquidity position.
To explore more about FlexShopper's outlook and access a full range of InvestingPro Tips, visit https://www.investing.com/pro/FPAY. And remember, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional InvestingPro Tips available that could help investors make more informed decisions regarding FlexShopper's stock.
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